A detailed study about the angel investors in terms of economic freedom

Despite the importance and increasingly common entrepreneurial activity in the world, what is evident in reality is that a high percentage of small and medium enterprises disappear in the short term. Guaranteeing the sustainability over time of the companies, would imply a significant impact on the world´s economy and therefore the generation of value, at macro and micro economic scales. By explaining the effects of the economic freedom and the correlation between the economic growth and facility to obtain financial leverage and defending the Angel Investment Method as one of the best forms of investment for the SMEs and entrepreneurs, the objective of this article is: First, to ensure that people with small businesses, from disadvantaged groups, or willing to create new companies, are aware of the potential that entrepreneurship may have for them as a labor market activity and to build motivations for pursuing them. Second, to diminish market, institutional and behavior failures which affect businessmen and entrepreneurs, in under-represented and disadvantaged groups. This includes decreasing barriers in financial markets, barriers to acquiring entrepreneurship skills, barriers to building entrepreneurial networks and building an entrepreneurial culture. Third, point out how economic freedom affects the entrepreneur both positively and negatively throughout the creation and operation of the company, giving a clearer view to the entrepreneurs of the effect of the social and political environment of the country where their company is founded. Show the importance of the effects and also promote the development of economic freedom in the world. The possibility to diminish these barriers would be expected to come from the exposure of the topic and the awareness of the institutions about these problems.